* Streams flowing into a harbour or estuary and within 2km of the coastal marine area.
* Some specified streams on the Coromandel Peninsula and other specified streams throughout the region.
* Margins of significant wetlands in the region and most Waikato lakes.
* Any stream flowing into Lake Taupo.
Land management officer Therese Balvert said the letter was sent out about a fortnight ago to make landowners aware of the rule and to remind them that subsidies of up to 35 per cent on fencing, planting and alternative water supplies were available only until the end of June.
The letter has gone to both dairy and dry stock farmers.
Dairy farmers are already committed to fencing off waterways under the clean streams accord between Environment Waikato and Fonterra. But dry stock farmers say the rule is impractical and a big expense, at a time when their returns are particularly low.
Dairy farmers can use a couple of hot wires as fencing but dry stock farmers, who usually run sheep as well as cattle, have to put in a post and batten fence.
Ms Balvert said a few people had been a bit angry about the letter, saying it was the first they had heard of the requirement. Other people wanted clarification about which streams they needed to fence.
The deadline for funding had been set to try to get the most sensitive waterways fenced off quickly. Enforcement of the rule would be determined by the council, she said.
Federated Farmers' Coromandel meat and fibre section chairman Mike Morrison said: "It [the letter] is a bit of a bombshell for us. We've pointed out on many occasions how impractical it is but the council was hell-bent on implementing it."
Hill farmers like himself use streams and rivers for water for themselves and stock and as access to parts of their farms. It would be hugely expensive to put up post and batten fences, especially as they were likely to be swept away in floods and had to be replaced, he said.
Fences had to be set three metres back from streams, taking out large chunks of farmland.
"Most [dry stock farmers] won't do it. If you're getting the income, you don't mind but sheep farmers have had a huge income reduction ... and the cattle market is way down this year. Thirty-five per cent is not really going a long way to putting up a fence," he said.
Waikato meat and fibre section chairman Andre de Haan said fencing off waterways was a good idea but it wasn't good for the council to be going in "boots and all".
Environment Waikato chairman Peter Buckley said the council had received a lot of calls but had also received letters of support. The rules could be subject to change.
He acknowledged sheep and beef farmers had a serious problem and the situation with remote hill farmers was "beyond what we could enforce".
